The Banking and Strategy Initiative

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US Economy: This week was a loser! Jobs Report, Apple’s $1 Tln, Bank of America and the Housing recovery


unemployment (Photo credit: Sean MacEntee)

The bearish ISM services PMI (The ISM Nonmanufacturing indices) also had a strong almost 90% correlation with the BLS report historically and  was pointing down. On the plus side Bank of America almost wants its downgrade yesterday as it will suffer additional costs of $6.1 bln in collateral and in the considered rantings of ZH it would mean it would finally be able to sever its Countrywide legacy totally on the right arm and get to the increased consumer and commercial lending business in the market which before the advent of  H2 could well mean more mortgages on new purchases and existing home sales than just refi and restructuring of foreclosure candidates for principal and term. However this year seems to be increasingly bleak for a housing market recovery

The S&P index was obviously looking at 1360 and it is healthy that the market was in a hurry to achieve that low mark soon as that means the low volume business keeping May and Spring alive next week would be more genuine investor interest int he world’s largest and most indebted economy.

SAN FRANCISCO, CA - JANUARY 21:  Pedestrians w...

SAN FRANCISCO, CA - JANUARY 21: Pedestrians walk by a Bank of America branch office on January 21, 2011 in San Francisco, California. Bank of America reported a fourth quarter loss of $1.2 billion, or 16 cents a share, bringing total losses for the year to $2.23 billion, or 37 cents a share. (Image credit: Getty Images via @daylife)

The Economy added a total of 115,000 jobs, 130,000 inPrivate payrolls and seemingly Easter weekend alone counted to 10,000 Drivers jobs and others which would mean the report was exceptionally subdued. January and February reports were revised by almost 30,000 jobs each ( upward) amnd April would also likely have more upward revisions, keeping the unemployment rate figure happy and optimistic as the 3% mark for the recovery growth gets questioned.

Apple’s sales may continue but the iPad has sounded a serious question in these quarterly results having counted for only 12 mln units albeit the margin being lower means financially Apple is better off by selling more iPhones. However, that to me means the new technology is not really a functional adjunct to life as previously supposed and iPhone is not falling off the phased out , pooped out cliff unlike the iPod and will be around for many years to come. It also probably means good news for PC and laptop shipments, including Apple’s own new iMacs on the line this 2012






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